Israel Population: 8,174,527

Following World War II, Britain withdrew from its mandate of Palestine, and the UN proposed partitioning the area into Arab and Jewish states, an arrangement rejected by the Arabs. Nonetheless, an Israeli state was declared in 1948, and Israel subsequently defeated the Arab armies in a series of wars that did not end deep tensions between the two sides. (The territories Israel has occupied since the 1967 war are not included in the Israel country profile, unless otherwise noted.) On 25 April 1982, Israel withdrew from the Sinai Peninsula pursuant to the 1979 Israel-Egypt Peace Treaty. In keeping with the framework established at the Madrid Conference in October 1991, Israel conducted bilateral negotiations with Palestinian representatives and Syria to achieve a permanent settlement with each. Israel and Palestinian officials on 13 September 1993 signed a Declaration of Principles (also known as the "Oslo Accords"), enshrining the idea of a two-state solution to their conflict and guiding an interim period of Palestinian self-rule. The parties achieved six additional significant interim agreements between 1994 and 1999 aimed at creating the conditions for a two-state solution, but most were never fully realized. Outstanding territorial and other disputes with Jordan were resolved in the 26 October 1994 Israel-Jordan Peace Treaty. Progress toward a final status agreement with the Palestinians was undermined by Israeli-Palestinian violence between 2001 and February 2005. Israel in 2005 unilaterally disengaged from the Gaza Strip, evacuating settlers and its military while retaining control over most points of entry into the Gaza Strip. The election of HAMAS to head the Palestinian Legislative Council in 2006 temporarily froze relations between Israel and the Palestinian Authority (PA). Israel engaged in a 34-day conflict with Hizballah in Lebanon from July-August 2006 and a 23-day conflict with HAMAS in the Gaza Strip from December 2008-January 2009. In November 2012, Israel engaged in a seven-day conflict with HAMAS in the Gaza Strip. Direct talks with the Palestinians most recently launched in July 2013 but were suspended in April 2014. The talks represented the fourth concerted effort to resolve final status issues between the sides since they were first discussed at Camp David in 2000. Three months later HAMAS and other militant groups launched rockets into Israel, which led to a 51-day conflict between Israel and militants in Gaza.

Lake Tiberias (Sea of Galilee) is an important freshwater source; the Dead Sea is the second saltiest body of water in the world (after Lake Assal in Djibouti); in 2014, there were 423 settlements in the Israeli-occupied territories - 42 settlements in the Golan Heights, 381 sites in the occupied Palestinian territories to include 212 settlements and 134 outposts in the West Bank, and 35 settlements in East Jerusalem; there are no Israeli settlements in the Gaza Strip because all were evacuated in 2005 (2014 est.)

Location:

Middle East, bordering the Mediterranean Sea, between Egypt and Lebanon

8,174,527 (includes populations of the Golan Heights of Golan Sub-District and also East Jerusalem, which was annexed by Israel after 1967) (July 2016 est.) note: approximately 21,000 Israeli settlers live in the Golan Heights (2015); approximately 201,000 Israeli settlers live in East Jerusalem (2014)

conventional long form: State of Israel conventional short form: Israel local long form: Medinat Yisra'el local short form: Yisra'el etymology: named after the ancient Kingdom of Israel; according to Biblical tradition, the Jewish patriarch Jacob received the name "Israel" ("He who struggles with God") after he wrestled an entire night with an angel of the Lord; Jacob's 12 sons became the ancestors of the Israelites, also known as the Twelve Tribes of Israel, who formed the Kingdom of Israel

Government type:

parliamentary democracy

Capital:

name: Jerusalem: note - while Israel proclaimed Jerusalem as its capital in 1950, the international community does not recognize it as such; the US, like all other countries, maintains its embassy in Tel Aviv-Yafo geographic coordinates: 31 46 N, 35 14 E time difference: UTC+2 (7 hours ahead of Washington, DC, during Standard Time) daylight saving time: +1hr, Friday before the last Sunday in March; ends the last Sunday in October

14 May 1948 (from League of Nations mandate under British administration)

National holiday:

Independence Day, 14 May (1948); note - Israel declared independence on 14 May 1948, but the Jewish calendar is lunar and the holiday may occur in April or May

Constitution:

no formal constitution; some functions of a constitution are filled mostly by the Declaration of Establishment (1948), the Basic Laws, and the Law of Return (as amended); Basic Laws amended several times, last in 2014 (2016)

Legal system:

mixed legal system of English common law, British Mandate regulations, and Jewish, Christian, and Muslim religious laws

cabinet: Cabinet selected by prime minister and approved by the Knesset elections/appointments: president indirectly elected by the Knesset for a 7-year term (limited to 1 term); election last held on 10 June 2014 (next to be held in 2021 but can be called earlier); following legislative elections, the president, in consultation with party leaders, tasks a Knesset member (usually the member of the largest party) with forming a government

highest court(s): Supreme Court (consists of the chief justice and 14 judges) judge selection and term of office: judges selected by the Judicial Selection Committee consisting of 3 Supreme Court judges, 2 Cabinet members including the Minister of Justice as chairman, 2 Knesset members, and 2 representatives from the Israel Bar Association; judges can serve up to mandatory retirement at age 70

subordinate courts: district and magistrate courts; national and regional labor courts; special and religious courts

note: adopted 2004, unofficial since 1948; used as the anthem of the Zionist movement since 1897; the 1888 arrangement by Samuel COHEN is thought to be based on the Romanian folk song "Carul cu boi" (The Ox Driven Cart)

Israel has a technologically advanced free market economy. Cut diamonds, high-technology equipment, and pharmaceuticals are among its leading exports. Its major imports include crude oil, grains, raw materials, and military equipment. Israel usually posts sizable trade deficits, which are covered by tourism and other service exports, as well as significant foreign investment inflows. Between 2004 and 2013, growth averaged nearly 5% per year, led by exports. The global financial crisis of 2008-09 spurred a brief recession in Israel, but the country entered the crisis with solid fundamentals, following years of prudent fiscal policy and a resilient banking sector. Israel's economy also weathered the 2011 Arab Spring because strong trade ties outside the Middle East have insulated the economy from spillover effects. Slowing domestic and international demand and decreased investment resulting from Israel’s uncertain security situation reduced GDP growth to an average of roughly 2.6% per year during 2014-15. Natural gas fields discovered off Israel's coast since 2009 have brightened Israel's energy security outlook. The Tamar and Leviathan fields were some of the world's largest offshore natural gas finds in the last decade. Political and regulatory issues have delayed the development of the massive Leviathan field, but production from Tamar provided a 0.8% boost to Israel's GDP in 2013 and a 0.3% boost in 2014. One of the most carbon intense OECD countries, Israel generates about 57% of its power from coal and only 2.6% from renewable sources. Income inequality and high housing and commodity prices continue to be a concern for many Israelis. Israel's income inequality and poverty rates are among the highest of OECD countries, and there is a broad perception among the public that a small number of "tycoons" have a cartel-like grip over the major parts of the economy. Government officials have called for reforms to boost the housing supply and to increase competition in the banking sector to address these public grievances. Despite calls for reforms, the restricted housing supply continues to impact the well-being of younger Israelis seeking to purchase homes. Tariffs and non-tariff barriers, coupled with guaranteed prices and customs tariffs for farmers have kept food prices high through 2015. In the long term, Israel faces structural issues, including low labor participation rates for its fastest growing social segments - the ultraorthodox and Arab-Israeli communities. Also, Israel's progressive, globally competitive, knowledge-based technology sector employs only about 8% of the workforce, with the rest mostly employed in manufacturing and services - sectors which face downward wage pressures from global competition. Expenditures on educational institutions remain low compared to most other OECD countries with similar GDP per capita. Israel has a technologically advanced free market economy. Cut diamonds, high-technology equipment, and pharmaceuticals are among its leading exports. Its major imports include crude oil, grains, raw materials, and military equipment. Israel usually posts sizable trade deficits, which are covered by tourism and other service exports, as well as significant foreign investment inflows. Between 2004 and 2013, growth averaged nearly 5% per year, led by exports. The global financial crisis of 2008-09 spurred a brief recession in Israel, but the country entered the crisis with solid fundamentals, following years of prudent fiscal policy and a resilient banking sector. Israel's economy also weathered the 2011 Arab Spring because strong trade ties outside the Middle East have insulated the economy from spillover effects. Slowing domestic and international demand and decreased investment resulting from Israel’s uncertain security situation reduced GDP growth to an average of roughly 2.6% per year during 2014-15. Natural gas fields discovered off Israel's coast since 2009 have brightened Israel's energy security outlook. The Tamar and Leviathan fields were some of the world's largest offshore natural gas finds in the last decade. Political and regulatory issues have delayed the development of the massive Leviathan field, but production from Tamar provided a 0.8% boost to Israel's GDP in 2013 and a 0.3% boost in 2014. One of the most carbon intense OECD countries, Israel generates about 57% of its power from coal and only 2.6% from renewable sources. Income inequality and high housing and commodity prices continue to be a concern for many Israelis. Israel's income inequality and poverty rates are among the highest of OECD countries, and there is a broad perception among the public that a small number of "tycoons" have a cartel-like grip over the major parts of the economy. Government officials have called for reforms to boost the housing supply and to increase competition in the banking sector to address these public grievances. Despite calls for reforms, the restricted housing supply continues to impact the well-being of younger Israelis seeking to purchase homes. Tariffs and non-tariff barriers, coupled with guaranteed prices and customs tariffs for farmers have kept food prices high through 2015. In the long term, Israel faces structural issues, including low labor participation rates for its fastest growing social segments - the ultraorthodox and Arab-Israeli communities. Also, Israel's progressive, globally competitive, knowledge-based technology sector employs only about 8% of the workforce, with the rest mostly employed in manufacturing and services - sectors which face downward wage pressures from global competition. Expenditures on educational institutions remain low compared to most other OECD countries with similar GDP per capita.

state broadcasting network, operated by the Israel Broadcasting Authority (IBA), broadcasts on 2 channels, one in Hebrew and the other in Arabic; 5 commercial channels including a channel broadcasting in Russian, a channel broadcasting Knesset proceedings (2008)

18 years of age for compulsory (Jews, Druze) military service; 17 years of age for voluntary (Christians, Muslims, Circassians) military service; both sexes are obligated to military service; conscript service obligation - 32 months for enlisted men and 24 months for enlisted women (varies based on military occupation), 48 months for officers; pilots commit to 9 years service; reserve obligation to age 41-51 (men), age 24 (women) (2015)

West Bank and Gaza Strip are Israeli-occupied with current status subject to the Israeli-Palestinian Interim Agreement - permanent status to be determined through further negotiation; Israel continues construction of a "seam line" separation barrier along parts of the Green Line and within the West Bank; Israel withdrew its settlers and military from the Gaza Strip and from four settlements in the West Bank in August 2005; Golan Heights is Israeli-occupied (Lebanon claims the Shab'a Farms area of Golan Heights); since 1948, about 350 peacekeepers from the UN Truce Supervision Organization headquartered in Jerusalem monitor ceasefires, supervise armistice agreements, prevent isolated incidents from escalating, and assist other UN personnel in the region